1. Understand the benefits of prior financial analysis

Project selection is essential, because no organization has unlimited resources. The organization must therefore decide which projects to select.

Two approaches are possible:

• the qualitative "scoring model" approach, which applies when several criteria are taken into consideration (see Preparing your project: opportunity and feasibility studies [FIC 1147] );

• quantitative analysis, based on financial reasoning and the desire to derive maximum revenue from each...